When you’re considering an expert company to come in to assist you with all of your logistical needs, reverse logistics are going to be a certain aspect that needs to be considered. There’s an old tangent that bandies about in the world of reverse logistics, the 5 R’s as they are known are a smart way of consolidating and collating the vast concept into an easily understood narrative. After all, if you’re going with a large scale company to assist you with your logistical requirements, then naturally it’s wise to have an understanding of the processes that are involved.
There’re many reasons to maintain an efficient reverse logistics rhetoric in your company ideology, not only for the face of the company but for loyalty and customer satisfaction which is paramount for a company that depends on shipping products and maintaining a healthy flow of patronage for keeping the bottom line moving ever upward. With the market also trending towards a more tech-based and higher turnaround style of business, it’s pertinent to facilitate the easiest routes possible for customers to return their products for one reason or another.
This is the magic of reverse logistics, so to make it easier for you to understand the concept, we’re going to go through the 5 R’s and have a quick rundown on why they’re vital to a reverse logistics division.
Returns & Exchanges
The inherently indispensable R on the list is having a viable returns and exchanges channel that’s easy to access for workers is vital. The hassle-free nature of returning a product should be as smooth as possible to ensure a customer loyalty base is established and is a major cornerstone in reverse logistics.
Repairs
Having an adequate repairing contract set up in lieu of straight replacements can be advantageous for companies looking to maintain a lower inventory count in their warehouses. This aspect of reverse logistics is very important for smaller businesses looking to build up their customer base at a decent rate, maintaining an air of happiness and satisfaction, the lower inventory count and necessary space will also manifest itself as a potentially lower cost of returns.
Recycling & Disposal
This is a wonderful aspect for greening up the company image while also reducing costs in potential fines from government entities for wasteful practices in product disposals. The recycling and disposal nature of reverse logistics that is maintained and bolstered will ensure a good company image and a greener solution for all, allowing you to sidestep potential fines and loss of customer base for not adhering to the times ahead.
Replacements
This is where you can separate yourself from the pack, in terms of reverse logistics, having an apt replacements policy in check that shortens the amount of time that a replacement is given to a customer will dramatically increase the chances of a return customer. Adding an element of ease for returning and replacing will also guarantee that you’re not one of the higher percentage considerations of the process being too difficult. In terms of reverse logistics competency, having this R mastered is a big bonus.
Reselling Returned Products
Finally, we come to the moneymaker of reverse logistics, the adequate reselling of returned products. Whether they were taken in to be repaired and are now in working condition or upgraded for the customer that no longer needs them. Reselling merchandise will invariably boost the bottom line if implemented correctly. Doing this will ensure the company can be a little more recyclable with their funds and bring a smaller company into the big leagues.